Buildings in South Africa will soon need this certificate – or owners could face jail time and millions in fines
Non-residential buildings in South Africa will soon be required to display an Energy Performance Certificate (EPC) – and building owners or accounting officers could face imprisonment, a fine, or both if they fail to comply.
According to WrightRose-Innes (WRI), business owners and accounting managers will have until 7 December 2025 to get an EPC, after which they will be severely penalised.
The initial cut-off to get an EPC was December 7 2022, but in November last year, the Minister of Mineral Resources and Energy, Gwede Mantashe, extended the cut-off date as only a small percentage of non-residential buildings had obtained a certificate in time.
The purpose of an EPC is to gauge a building’s energy efficiency. This is done by assigning a score from A to G – with A being extremely efficient and G the least efficient possible.
An EPC is designed to help building owners and accounting officers identify areas to improve energy efficiency. This is in line with global best practices and will ensure that a building remains economically sustainable while also reducing the energy footprint of the building.
However, not every non-residential building will need an EPC.
According to the 2020 Regulations for the Mandatory Display and Submission of Energy Performance Certificates for Buildings under the National Energy Act 34 of 2008, government and publicly owned buildings must have an area of 1000 square metres.
A 2000m2 area is required for privately owned non-residential properties.
WRI also notes that only non-residential buildings used for”entertainment and public assembly, theatrical and indoor sport, places of instruction and offices are required to obtain and display an EPC.”
If the building fails to display an EPC, the building owners or the presiding accounting officer will be in violation of the law and could be fined up to R5 million, face five years in prison or both.
To acquire an EPC, a South African National Accreditation System (SANAS) accredited inspection body must evaluate a building and submit documents on behalf of the building owners or accounting officers to the South African National Energy Development Institute (SANEDI).
SANEDI will then assess and verify the information and release an EPC to the SANAS-accredited inspection body, giving the EPC to the building owners or accounting officers.
The building owner or accounting officer must also submit a certified electric copy to SANEDI, which will then be uploaded to the National Building Energy Performance Register (NBEPR).
Future implications
Not only will the EPC make a building more economically efficient, but it will also give tenants greater information regarding their use of the building.
One major drawback is that EPCs are only valid for five years, and buildings must be assessed again by a SANAS-accredited inspection body to obtain a new EPC.
Head of Real Estate and Conveyancing Practice at CMS at Kagiso Mahlangu said that an EPC comes at quite a high cost for businesses – especially those not at the same level as major commercial property owners.
While EPCs are required in the UK and the US to sell property, the laws will differ slightly in South Africa as everyone can see the EPC rating. This will allow buyers and potential tenants the chance to look at the energy efficiency of a building, encouraging building managers to make sure that their buildings are as energy efficient as possible.
Mahlangu said that introducing EPCs was a step in the right direction to fight against climate change, as it will ensure that energy efficiency remains a top priority for building owners.
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